The $100,000 Salary Analysis for Bozeman, MT

This guide treats a $100,000 salary as a raw number, not a lifestyle promise. Bozeman is a high-cost area relative to the rest of Montana, driven largely by housing and the "lifestyle tax" of proximity to Yellowstone. We will focus on Purchasing Power—what your paycheck actually buys locally—rather than the nominal salary figure.

1. The Verification Test: What You Actually Keep

A $100,000 gross salary is significantly reduced by mandatory deductions before you see a dime.

• Gross Salary: $100,000
• Federal Tax (Est.): -$14,000
• FICA (Social Security/Medicare): -$7,650
• MT State Income Tax (Est.): -$5,200
  • *Note: Montana uses a progressive tax structure. For a $100k earner, you fall into the 6.75% bracket. We estimate a blended effective rate here of roughly 5.2%.*
• Net Pay (Annual): $73,150
• Net Pay (Monthly): $6,095

The Reality: You are losing roughly 27% of your gross income to taxes. Your take-home is not six figures; it is roughly fifty-five thousand dollars adjusted for state tax differences.

2. Smart Budget (50/30/20 Rule)

Using your monthly net of $6,095, here is how the standard budget algorithm holds up in the Bozeman market.

Needs (50%): $3,047

• Rent (1BR Market Avg): $1,600 - $1,800
  • Context: This is the current market rate for a decent unit within city limits. "None" is not an option unless you own property or have a unique roommate situation.
• Utilities (Electric/Gas/Internet): $250
• Groceries: $400
• Transportation: $300
• Remaining Buffer: $297

Verdict: This budget is tight. If your rent hits $1,800, you are immediately over the 50% threshold, forcing cuts elsewhere.

Wants (30%): $1,828

• This category covers dining out, the "Big Sky" lifestyle expenses (ski passes, gear, gas to trailheads), and entertainment. In Bozeman, this discretionary money evaporates quickly if you participate in the local outdoor recreation culture.

Savings (20%): $1,219

• This is your only path to wealth accumulation. $1,219/month is a respectable savings rate, but it does not stretch far if you intend to buy a home in the Gallatin Valley, where median prices remain high.

3. Bozeman Tax Context

Montana sits in the middle of the spectrum nationally, but it is a high-tax state compared to "no-income-tax" destinations.

• Vs. Texas/Florida: You pay roughly $5,000 - $6,000 more in taxes annually than you would in Austin or Orlando.
• Vs. California: You save roughly $6,000 - $7,000 annually compared to the same salary in San Francisco.
• The Catch: While you save on income tax compared to CA/NY, Bozeman housing costs are catching up to those metros, while local wages (outside of remote tech/finance) have not kept pace. You are paying a "mountain premium" on rent that erodes your state tax savings.

4. FAQ

"Is $100k good here?"
It is a survival salary for a single person wanting to live alone, or a comfortable salary for a dual-income household. It allows you to pay bills and save a little, but it does not make you "rich" in Bozeman. You will feel middle-class, not wealthy.

"Local income tax?"
No city-specific income tax. You pay State Income Tax (up to 6.75%) and Local Option Taxes (sales tax) only exist in specific tourism districts (e.g., resort towns), not Bozeman proper. Your main tax burden is State Income Tax and Property Tax (if you buy).